LG’s LCD Factory Sold for $1.5 Billion: Here’s the New Strategy!
LG Display is making a significant move towards its future by deciding to sell one of its main LCD screen factories in China to TCL CSOT. The company’s next plan is to focus on OLED screen production, which will become the core of its business. Here are the details…
LG Leaves the LCD Era Behind
According to reports, regulatory bodies highlight that the deal was made for 10.8 billion yuan (approximately $1.54 billion). The sale agreement of LG Display’s LCD panel setup includes the full ownership of the assembly plant, which had contributed to 80% of the company’s LCD production.
Initially, the factory in China was seen as LG’s star for manufacturing large LCD panels. However, with a shift in focus, the company no longer sees the need for these panels as before, making the factory less efficient for future operations.
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The transaction between LG Display and TCL is expected to be completed by March 2025, allowing LG to transfer all its operations to the more competitive OLED sector.
LG sees long-term potential in OLED screens, which are used in premium products ranging from smartphones, laptops, and desktop monitors to modern televisions.
It’s also worth noting that LG will continue producing OLED panels in China, meaning this sale is not an attempt to exit the country or reduce its presence there.
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